Best way to pay a vendor from a distance?

Question

Because I'm not local, I have been mailing checks to vendors & workers upon completion of jobs. However, many of them prefer to receive payment immediately upon completion and the mail takes a few days to arrive.

(I've used credit cards in the past but vendors typically don't want those fees...)

What are my options for paying them in a timely manner without incurring fees?

Thanks!

Kuba F. · Answer

Account Closed  Some will accept wires, but then you get stuck with the fees depending on speed.  I prefer credit cards because then you can avoid having to send out 1099s.  Checks are the only fee-less ways I've used.  I've never had a problem with a vendor waiting a couple days though, most I've dealt with are comfortable with net 30-90 terms.

Dan Lukens · Answer

Account Closed some banks it takes up to 2 days but my credit union is next day

Mark Gallagher · Answer

Account Closed

After verifying the work has been completed, you can send them an ACH payment from your bank to their bank. My fee is $10 per batch. Send a few at a time, and you're looking at $1-$3 per payment. Given the cost of stamps and paper checks, it's really not that much more. It takes 1-2 days to clear. Once they're set up as one of your vendors, you could send payments in probably 30 seconds or less.

Dan Lukens · Answer

I just have them register on Venmo, its fast and easy to track, they send you monthly statements.

Jarvis Smith · Answer

@Kuba F. what do you mean avoid sending 1099s if using credit cards? I was under the impression, and have been sending out 1099s for anything over $600 regardless of the form of payment.

Account Closed · Answer

It is in their PayPal account pretty much instantly if you are doing a transfer from your bank account.  There may be a better solution.  Do you use he same contractor?  Do you have someone local who can pay?

Options:

1) Make your contractors use the same bank.  Take money out of your account at your branch and deposit it into their account at your local branch.  Instant payment.

2) Find out which bank they use and find a local branch.  Take cash to their bank and deposit it into their account.  Instant Payment.

3) Have somo one local who can either front you the cash or can go to your bank.  Have them open an account.  When you have to pay someone, deposit into this person's account at your branch and they have instant access to pay your peeps.

4) Send a checkbook to someone local to your property and have them write checks on your behalf as needed.

Joe Moore · Answer

Account Closed BOA, Wells Fargo, and Chase work together as one to pay to the customers at the other two banks.  Actually this group has now expanded to other banks outside this group of 3.  As has been stated, it may take an extra day or two for the receiver to get payment into their account.  Also there maybe a limit on the amount you can pay out.  You may have to do more than one payment to get around this and maybe a slightly different amount to be paid to avoid confusion of payments being duplicate payments.

Account Closed · Answer

Didn't think of #2 --t hat might be a good option. Thanks for the ideas.

Account Closed · Answer

Cool. I will look into this. Thanks!

Account Closed · Answer

Does the recipient also need a Chase account to send money this way?

Best way to pay a vendor from a distance?

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